VAT fuel price crisis: Why IMF prescriptions cause governments problems

IMF Managing Director Christine Lagarde speaks during a press conference on "Joint Action Against Tax Fraud and Money Laundering-Transparency at the Global Level," during the IMF and World Bank Group 2016 Spring Meetings in Washington, DC. [AFP PHOTO / MOLLY RILEY]

The deal that Kenya signed with the IMF in 2013 in order  for the country  to enjoy the  fund’s  credit facilities entailed doing away with tax exemptions  in order to increase revenues, reduce budgetary deficits and ultimately reduce foreign debt.